For David Balironda Mukasa, walking through his oil palm plantation in Kalangala is a reminder of how access to financial services has changed the lives of farmers on the islands.
Mukasa, who has served in the leadership of the Kalangala Oil Palm Growers Trust (KOPGT) for more than two decades, says many farmers once struggled to meet basic needs, including paying school fees and accessing formal financial services.
“Stanbic came to Kalangala way back in 1989 when our people were poor, barely had shoes on their feet and there was little financial literacy,” Mukasa says.
He says the situation has changed significantly, with farmers now able to save, borrow, invest and expand their businesses.
Although other banks have since established operations in Kalangala, Mukasa says many farmers have remained with Stanbic because of the relationship the bank has built with the community over the years.
“The bank has walked this journey with the farmers from the very beginning. They have stood with us throughout,” he says.
Kalangala District, which is made up of 84 islands, has experienced increased economic activity since the launch of the oil palm project in 2002.
The project was developed through a partnership involving the government of Uganda, the International Fund for Agricultural Development (IFAD), the World Bank and Wilmar International, through Oil Palm Uganda Limited (OPUL) and Bidco Uganda Limited (BUL).
OPUL developed oil palm plantations and supplies crude palm oil to BUL, where it is used to manufacture edible oils, soaps, detergents and other consumer products.
More than 2,500 out-growers were organised under the Registered Trustees of the Kalangala Oil Palm Growers Trust across seven production blocks. The farmers supply fresh fruit bunches to OPUL’s palm oil mill at Bwendero on Bugala Island.
The out-grower scheme began transitioning in 2018, leading to the formation of the Ssese Oil Palm Growers Cooperative Society (SOPGCO).
Stanbic says its role has extended beyond processing farmers’ payments to providing financing and supporting savings and other financial services.
Since commercial production began in 2006, between Shs60 billion and Shs70 billion in palm oil proceeds have reportedly been processed through Stanbic annually.
Farmers also receive between Shs7 billion and Shs10 billion in annual dividends from their shareholding in OPUL, with these payments also processed through the bank.
The bank has also developed a financing model based on savings and credit co-operative organisations (SACCOs).
Melissa Nyakwera, Stanbic’s head of commercial banking, says registered SACCOs can access unsecured loans of up to Shs4 billion at an interest rate of 10 per cent.
Individual farmers in selected agricultural value chains, including palm oil, coffee, dairy, sugarcane and cocoa, can also access unsecured financing of up to Shs200 million.
Milly Nambatya, manager of Ssese Oil Palm Growers SACCO, says the financing has helped the cooperative expand.
The SACCO initially borrowed Shs35 million but has since increased its borrowing capacity to up to Shs2 billion. Its membership has also grown from 30 to more than 1,000, with women and young people making up the majority.
Stanbic Bank Uganda chief executive Mumba Kalifungwa says the bank’s work in Kalangala is part of its wider commitment to financial inclusion and enterprise development.
Through its Positive Impact Agenda, launched in 2025, the bank aims to mobilise up to Shs1 trillion by 2028 for inclusive economic growth.
The next phase of the oil palm project is expected to cover about 2,600 hectares and benefit around 1,000 farmers after farmers in the first phase repaid a Shs52 billion government loan.
